Class Complaints Challenge Walmart-Netflix Deal

A number of class action complaints have been filed throughout the country challenging a 2005 agreement between Walmart and Netflix in which the retailer agreed to abandon the on-line DVD rental business and transfer its customers to Netflix, and in turn, Netflix agreed not to sell movies on-line and to refer its customers to Walmart for movie purchases.  The plaintiffs contend that the agreement unlawfully divides the market.  Walmart claims that it independently decided to exit the on-line rental market before entering the the deal with Netflix, and thus the arrangement is not anticompetitive.

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